Despite lockdowns, CEOs see growth in PH
Despite continuing lockdowns with 42 percent of Philippine CEO said their average daily sales/revenues declined by at least 20 percent each time the country is placed different levels of quarantines, more CEOs also forecast their revenues to grow over the next 12 months, a survey revealed.
The PwC study conducted in August this year showed that 74 percent CEOs higher believe their revenues to grow in the next 12 months. The number is higher than the 63 percent polled in April and May this year.
PwC Philippines, as Knowledge Partner for the Management Association of the Philippines’ (MAP) International CEO Web Conference, conducted the PwC MAP 2021 Philippine CEO survey that follows the conference theme “Hindsights, Insights, Foresights:The Future in the Present Tense”.
On the country’s economy, the top key growth drivers for CEOs are infrastructure development (61 percent), domestic consumption (54 percent) and government spending (52 percent). Half of them think that the economy will recover after two to three years.
The CEOs identified the slow vaccine rollout, political uncertainty and reliance on lockdowns as the major factors that may delay the Philippine economy’s recovery.
PwC Philippines Chairman Emeritus and ESG Leader Alex Cabrera further noted of another key finding in the study.
“To support their businesses, the majority of the CEOs tapped external debt, and additional capital from both their personal funds and existing investors in the past year. Going forward, the majority of the CEOs still plan to tap external debt and/or equity to help their businesses. Despite the recent successful listings, only a few of the CEOs say that they’ll raise capital through the capital markets. Accessing the capital markets may be challenging for certain companies unless they have shown resilience and growth during the pandemic.”
On job disruption because of companies’ adopting to digitalization, Cabrera said that upskilling of workers is very much a priority now. While he said that there could be displacements for those that failed to retool and enhance their skills, Cabrera also stressed that this is also an opportunity for people to go for higher value work and processes in the business.
He assured that technology is there to help in a big way and makes business sustainable.
It was, however, pointed that the broadband infrastructure has been lagging behind amid strong demand for faster internet.
MAP President Aurelio “Gigi”
R. Montinola III acknowledged the significant role of the yearly survey. “The conversations that the survey brings during and after our conference energize the business community in planning for and transitioning to a new future. We want the delegates to look beyond information and to help shape the changing world order.”
“The survey results provide the 178 CEOs’ views for the conference that aims to be the springboard for taking the present pandemic discussion to the next level—The Future. In doing so, PwC illustrates its global strategy in the Philippines: The New Equation. This strategy responds to two major interconnected needs facing organizations: building trust and delivering sustained outcomes, in an environment where societal expectations have never been greater,” PwC Philippines Chairman and Senior Partner Roderick Danao said.